Economic implication of contract farming on small-scale rice farmers in Kwara State, Nigeria

Abstract

This study examines the implication of contract farming on Olam Out-growers farming scheme in Kwara State, Nigeria. The objectives of the study are to determine the costs and returns to production of rice, assess the productivity level of rice, evaluate the technical efficiency of rice farm and identify the determinants of the technical inefficiency of the rice farms in contract farming. In this study, the average net farm income of the rice farmers under the scheme was N191,862.56 and the land productivity level was 2,006.04kg/ha. The technical efficiency of the rice farm was estimated using Cobb-Douglas Stochastic Frontier Production function which shows that likelihood coefficients for quality of seeds, hired labour and farm size were statistically significant at 1% level. Likewise, the determinants of technical efficiency among the farmers were household size and farming experience. The results further show that the contract farming scheme has a positive impact on the lives of rice farmers. Therefore, there is a need for partnership with private contract farming outfits in order to improve the current level of access to inputs by rice farmers.
 Keywords: Contract farming, Out-growers rice farmers, Technical efficiency, Farm income

Livelihood Status of Rice Contract Farmers in Benue State of Nigeria

“…This implies that contract farmers were still in their active and productive where innovative ideas and improved farming practices capable of improving their livelihood status are adopted. The finding concurs with that of Akanbi et al (2019 2 revealed that 86.9% of the contract farmers in were married indicating family responsibilities that will influence rice farmers" participation in contract farming in order to enhance rice farmers livelihood status. This finding is in consonance with that of Namso and Gabriel (2015) who opined that majority of contract fishermen in Akwa-Ibom State, Nigeria were married.…”

Analysis of rice production and the impacts of the usage of certified seeds on yield and income in Côte d'Ivoire

“…The majority of the rice farmers using certified seeds had an educational background, while about 44% of the users of farmers' seeds had no formal education. Thus, educated farmers embrace the adoption of new technology more than uneducated ones (Akanbi et al. , 2020; Mukaila et al.…”

Assessment of Fumman Agricultural Products Industries’ Contract Farming Scheme Among Pineapple Fruit Farmers in Oyo State, Nigeria

“…1 March 2024Page: 281 -296| 283 2020. Contract farming in Africa is mainly promoted by private sector like private companies/individuals with little support from public institution, that is Public-Private Partnerships (PPPs) (Oladapo et al, 2023;Akanbi et al, 2019;Adebisi et al, 2020). According to and Barrowclough et al (2019), many contract farming schemes in less developed countries are multipartite arrangements involving private firms (usually foreign, but occasionally local with examples such as OLAM, BATIAL and Nestle SLAMARK in Nigeria), the host-country government, and international aid or lending agencies, such as the U.S. Agency for International Development (USAID), the World Bank, or the Commonwealth Development Corporation (CDC).…”

“…It is expected that with such an arrangement, farmers agree to deliver certain quantities of a specific product at the quantified eminence criteria and time, and the buyer might also supply some inputs or hands-on backing to the farmer such as better technology, coordinating producers and consumer's market along with strong grass-root linkages (Adebisi et al, 2020& Akanbi et al, 2019. The contract farming models usually provide farmers with services like access to credit; extension service, agricultural production inputs; training on good agronomic practices, farm supervision, storage facilities, and readily available markets for harvested crops among other services.…”

“…Although several studies have been conducted worldwide on contract farming, its' impact on farmers' welfare and its' sustainability. Authorities like Nazifi et al (2021); Adebisi et al (2019); Akanbi, et al (2019); Ibrahim & Garba, (2019); Oladapo et al, (2023); Enwelu & Iyere-Freedom, (2023) and studied farmers' income from contract farming, the impact of contract farming on national and household food security, factors influencing farmers' decision on contract farming and extent of participation in contract farming as well as perception about contract farming. However, Nigeria's situation is unique and calls for proper investigation especially because the sustainability of an idea or a development program is hinged on the favorable perception of the participants as well as benefits derived by the beneficiaries from such strategy or program.…”